Small Business Relief (SBR)

Small Business Relief (SBR) is a transitional measure under the UAE corporate-tax regime aimed at startups and small companies. A resident taxable person whose revenue does not exceed AED 3 million in the relevant tax period — and in all previous periods since corporate tax began — can elect SBR and be treated as having zero taxable income for that period.

Electing SBR means no corporate tax is payable and the company benefits from simplified compliance, though it must still register for corporate tax and file a return claiming the relief. The trade-off is that while electing SBR, the business cannot carry forward tax losses or net interest expenditure to use in later, taxable years.

Under current rules, SBR is available for tax periods up to 31 December 2026. After that, businesses fall back to the standard 0% on the first AED 375,000 and 9% above. ZETUP PRO helps clients decide whether electing SBR each year is advantageous and ensures the corporate-tax registration and return are filed correctly.